Gold Pushes Higher Against Sagging Greenback

Gold prices continue to head higher, and has posted slight gains in the Monday session. In North American trade, the spot price for an ounce of gold is $1341.40, up 0.22% on the day. There are no US indicators on the schedule, as the markets are closed in observance of Martin Luther King Day. On Tuesday, the sole indicator is the US Empire State Manufacturing Index.

Gold has reeled off five straight winning weeks, taking advantage of a broadly lower US dollar. Gold has climbed an impressive 3.0% in January, as the metal is trading at its highest level since September 2016. Although US numbers have generally been strong of late, this has not stemmed the gold rally. If major currencies such as the euro and yen continue to make inroads against the dollar, traders can expect the gold rally to continue.

On Friday, gold prices pushed higher, as the markets were not impressed with US consumer numbers. CPI slowed to 0.1%, down from 0.4% a month earlier. Core CPI was stronger, improving to 0.3%. Both indicators were within expectations, but pointed to weak inflation levels. On the bright side, consumer spending remained strong. December retail sales, boosted by Christmas shopping, were up 5.4% compared to a year ago. Although investors were not impressed with the December data, as the euro rally continued, the spending numbers point to a strong finish for the economy in 2017. Earlier in the week, gold gained ground after hawkish ECB minutes raised speculation that the ECB could wind up its asset purchase program later this year. The minutes sent the US dollar to lower ground.

XAU/USD Fundamentals

Monday (January 15)

There are no US events

Tuesday (January 16)

8:30 US Empire State Manufacturing Index. Estimate 18.5

*All release times are GMT

*Key events are in bold

XAU/USD for Monday, January 15, 2018

XAU/USD January 15 at 11:00 EST

Open: 1338.42 High: 1344.87 Low: 1336.00 Close: 1341.40

XAU/USD Technical

S3

S2

S1

R1

R2

R3

1285

1307

1337

1375

1416

1433

XAU/USD posted slight gains in the Asian session. The pair has been steady in the European and North American sessions

1337 is providing weak support

1375 is the next resistance line

Current range: 1307 to 1337

Further levels in both directions:

Below: 1307, 1285, 1260 and 1240

Above: 1337, 1375 and 1416

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

MarketPulse is a forex, commodities, and global indices analysis, and forex news site providing timely and accurate information on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

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